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April 30, 2021
Institutional Shares
Ticker
Janus Henderson Mid Cap Value Portfolio . . . . . . . . . . . . . . . . . JAMVX
Janus Aspen Series
Prospectus
The Securities and Exchange Commission has not approved or disapproved of these securities or passed on the accuracy or
adequacy of this Prospectus. Any representation to the contrary is a criminal offense.This Prospectus describes Janus Henderson Mid Cap Value Portfolio (the “Portfolio” or “Mid Cap Value Portfolio”), a series of Janus Aspen Series (the “Trust”). Janus Capital Management LLC (“Janus Capital”) serves as investment adviser to the Portfolio. The Portfolio currently offers two classes of shares. The Institutional Shares (the “Shares”) are offered by this Prospectus in connection with investment in and payments under variable annuity contracts and variable life insurance contracts (collectively, “variable insurance contracts”), as well as certain qualified retirement plans. This Prospectus contains information that a prospective purchaser of a variable insurance contract or plan participant should consider in conjunction with the accompanying separate account prospectus of the specific insurance company product before allocating purchase payments or premiums to the Portfolio. Each variable insurance contract involves fees and expenses that are not described in this Prospectus. Refer to the accompanying contract prospectus for information regarding contract fees and expenses and any restrictions on purchases or allocations. For the purpose of this Prospectus, any reference to the “Janus Henderson funds” is inclusive of all series of the Trust, collectively, unless otherwise noted in this Prospectus.
TABLE OF CONTENTS
PORTFOLIO SUMMARY
Janus Henderson Mid Cap Value Portfolio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
ADDITIONAL INFORMATION ABOUT THE PORTFOLIO
Fees and expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Additional investment strategies and general portfolio policies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Risks of the Portfolio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
MANAGEMENT OF THE PORTFOLIO
Investment adviser. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
Management expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
Investment personnel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
OTHER INFORMATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
DISTRIBUTIONS AND TAXES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
SHAREHOLDER’S GUIDE
Pricing of portfolio shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
Administrative fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
Payments to financial intermediaries by Janus Capital or its affiliates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
Purchases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
Redemptions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
Excessive trading . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
Shareholder communications. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
FINANCIAL HIGHLIGHTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30
GLOSSARY OF INVESTMENT TERMS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
1 Janus Aspen SeriesPORTFOLIO SUMMARY
Janus Henderson Mid Cap Value Portfolio
Ticker: JAMVX Institutional Shares
INVESTMENT OBJECTIVE
Janus Henderson Mid Cap Value Portfolio (“Mid Cap Value Portfolio”) seeks capital appreciation.
FEES AND EXPENSES OF THE PORTFOLIO
This table describes the fees and expenses that you may pay if you buy and hold Shares of the Portfolio. Owners of variable
insurance contracts that invest in the Shares should refer to the variable insurance contract prospectus for a
description of fees and expenses, as the following table and examples do not reflect deductions at the separate
account level or contract level for any charges that may be incurred under a contract. Inclusion of these charges
would increase the fees and expenses described below.
ANNUAL FUND OPERATING EXPENSES
(expenses that you pay each year as a percentage of the value of your investment)
Management Fees(1) 0.62%
Other Expenses 0.19%
Total Annual Fund Operating Expenses 0.81%
(1) This fee may adjust up or down monthly based on the Portfolio’s performance relative to its benchmark index over the performance measurement period.
For more information regarding performance-based advisory fees, refer to “Management Expenses” in the Portfolio’s Prospectus.
EXAMPLE:
The Example is intended to help you compare the cost of investing in the Portfolio with the cost of investing in other mutual
funds. The Example assumes that you invest $10,000 in the Portfolio for the time periods indicated, reinvest all dividends
and distributions, and then redeem all of your Shares at the end of each period. The Example also assumes that your
investment has a 5% return each year and that the Portfolio’s operating expenses remain the same. Although your actual costs
may be higher or lower, based on these assumptions your costs would be:
1 Year 3 Years 5 Years 10 Years
Institutional Shares $ 83 $ 259 $ 450 $ 1,002
Portfolio Turnover: The Portfolio pays transaction costs, such as commissions, when it buys and sells securities (or “turns
over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs. These costs, which are not reflected
in annual fund operating expenses or in the Example, affect the Portfolio’s performance. During the most recent fiscal year,
the Portfolio’s turnover rate was 44% of the average value of its portfolio.
PRINCIPAL INVESTMENT STRATEGIES
The Portfolio pursues its investment objective by investing primarily in the common stocks of mid-sized companies whose
stock prices are believed to be undervalued by the portfolio managers. The Portfolio invests, under normal circumstances, at
least 80% of its net assets (plus any borrowings for investment purposes) in equity securities of companies whose market
capitalization falls, at the time of purchase, within the 12-month average of the capitalization range of the Russell Midcap®
Value Index. The market capitalizations within the index will vary, but as of December 31, 2020, they ranged from
approximately $123 million to $47.25 billion. The Portfolio may also invest in foreign securities, which may include
investments in emerging markets. The Portfolio may invest, under normal circumstances, up to 20% of its net assets in
securities of companies having market capitalizations outside of the aforementioned market capitalization ranges. In addition,
when the portfolio managers believe that market conditions are unfavorable for investing, or when they are otherwise unable
to locate attractive investment opportunities, the Portfolio may invest up to 20% of its net assets in cash or similar
investments.
2 Janus Henderson Mid Cap Value PortfolioThe Portfolio focuses on companies that have fallen out of favor with the market or that appear to be temporarily
misunderstood by the investment community. As defensive value managers, the portfolio managers generally look for
companies with:
• strong management teams;
• strong and stable balance sheets and solid recurring free cash flows;
• attractive relative and absolute valuation ratios or that have underperformed recently;
• favorable reward to risk characteristics;
• durable competitive advantages that are trading at attractive valuations; and
• strong long-term prospects.
The portfolio managers’ philosophy is to weigh a security’s downside risk before considering its upside potential, which may
help provide an element of capital preservation.
The Portfolio may invest in equity and debt securities of real estate-related companies. Such companies may include those in
the real estate industry or real estate-related industries. These securities may include common stocks, preferred stocks, and
other securities, including, but not limited to, mortgage-backed securities, real estate-backed securities, securities of real estate
investment trusts (“REITs”) and similar REIT-like entities. A REIT is a trust that invests in real estate-related projects, such as
properties, mortgage loans, and construction loans. REITs are generally categorized as equity REITs, mortgage REITs, or
hybrid REITs. A REIT may be listed on an exchange or traded over-the-counter.
PRINCIPAL INVESTMENT RISKS
The biggest risk is that the Portfolio’s returns will vary, and you could lose money. The Portfolio is designed for long-term
investors seeking an equity portfolio, including common stocks. Common stocks tend to be more volatile than many other
investment choices.
Value Investing Risk. The Portfolio may invest in value stocks. Because different types of stocks tend to shift in and out of
favor depending on market and economic conditions, “value” stocks may perform differently than other types of stocks and
from the market as a whole, and can continue to be undervalued by the market for long periods of time. It is also possible
that a value stock will never appreciate to the extent expected by the portfolio managers.
Market Risk. The value of the Portfolio’s holdings may decrease if the value of an individual company or security, or multiple
companies or securities, in the Portfolio decreases or if the portfolio managers’ belief about a company’s intrinsic worth is
incorrect. Further, regardless of how well individual companies or securities perform, the value of the Portfolio’s holdings
could also decrease if there are deteriorating economic or market conditions. It is important to understand that the value of
your investment may fall, sometimes sharply, in response to changes in the market, and you could lose money. Market risk
may affect a single issuer, industry, economic sector, or the market as a whole. Market risk may be magnified if certain social,
political, economic, and other conditions and events (such as terrorism, conflicts, social unrest, natural disasters, epidemics
and pandemics, including COVID-19) adversely interrupt the global economy and financial markets.
Small- and Mid-Sized Companies Risk. The Portfolio’s investments in securities issued by small- and mid-sized companies,
which can include smaller companies offering emerging products or services, may involve greater risks than are customarily
associated with larger, more established companies. Securities issued by small- and mid-sized companies tend to be more
volatile and somewhat more speculative than securities issued by larger or more established companies and may
underperform as compared to the securities of larger or more established companies.
Management Risk. The Portfolio is an actively managed investment portfolio and is therefore subject to the risk that the
investment strategies employed for the Portfolio may fail to produce the intended results. The Portfolio may underperform its
benchmark index or other mutual funds with similar investment objectives.
Foreign Exposure Risk. The Portfolio may have exposure to foreign markets as a result of its investments in foreign
securities, including investments in emerging markets, which can be more volatile than the U.S. markets. As a result, its
returns and net asset value may be affected to a large degree by fluctuations in currency exchange rates or political or
economic conditions in a particular country. In some foreign markets, there may not be protection against failure by other
parties to complete transactions. It may not be possible for the Portfolio to repatriate capital, dividends, interest, and other
income from a particular country or governmental entity. In addition, a market swing in one or more countries or regions
where the Portfolio has invested a significant amount of its assets may have a greater effect on the Portfolio’s performance
3 Janus Henderson Mid Cap Value Portfoliothan it would in a more geographically diversified portfolio. The Portfolio’s investments in emerging market countries, if any,
may involve risks greater than, or in addition to, the risks of investing in more developed countries.
Real Estate Securities Risk. The Portfolio’s performance may be affected by the risks associated with investments in real
estate-related companies. The value of real estate-related companies’ securities is sensitive to changes in real estate values and
rental income, property taxes, interest rates, tax and regulatory requirements, supply and demand, and the management skill
and creditworthiness of the company. Investments in REITs involve the same risks as other real estate investments. In
addition, a REIT could fail to qualify for tax-free pass-through of its income under the Internal Revenue Code of 1986, as
amended (the “Internal Revenue Code”) or fail to maintain its exemption from registration under the Investment Company
Act of 1940, as amended, which could produce adverse economic consequences for the REIT and its investors, including the
Portfolio.
Cash Holdings Risk. The Portfolio’s investments in cash, cash equivalents, or similar investments may increase due to a lack
of favorable investment opportunities or other extraordinary factors. As a result, the Portfolio may not participate in market
advances or declines to the same extent that it would if the Portfolio had been fully invested in the market. Furthermore,
cash, cash equivalents, or similar investments may generate minimal or no income and could negatively impact the Portfolio’s
performance and ability to achieve its investment objective. The Portfolio may invest in securities such as repurchase
agreements and other short-term debt obligations to generate return on its cash position.
An investment in the Portfolio is not a bank deposit and is not insured or guaranteed by the Federal Deposit Insurance Corporation or
any other government agency.
PERFORMANCE INFORMATION
The following information provides some indication of the risks of investing in the Portfolio by showing how the Portfolio’s
performance has varied over time. The bar chart depicts the change in performance from year to year during the periods
indicated, but does not include charges or expenses attributable to any insurance product, which would lower the
performance illustrated. The Portfolio does not impose any sales or other charges that would affect total return computations.
Total return figures include the effect of the Portfolio’s expenses. The table compares the average annual returns for the
Institutional Shares of the Portfolio for the periods indicated to a broad-based securities market index. All figures assume
reinvestment of dividends and distributions. For certain periods, the Portfolio’s performance reflects the effect of expense
waivers. Without the effect of these expense waivers, the performance shown would have been lower.
The Portfolio’s past performance does not necessarily indicate how it will perform in the future. Updated performance information is
available at janushenderson.com/VITperformance or by calling 1-877-335-2687.
Annual Total Returns for Institutional Shares (calendar year-end)
30.35%
26.09%
19.03%
11.14% 13.94%
8.77%
– 2.64% – 3.47% – 0.92%
– 13.63%
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Best Quarter: 4th Quarter 2020 18.29% Worst Quarter: 1st Quarter 2020 – 29.11%
4 Janus Henderson Mid Cap Value PortfolioAverage Annual Total Returns (periods ended 12/31/20)
Since
Inception
1 Year 5 Years 10 Years (5/1/03)
Mid Cap Value Portfolio
Institutional Shares – 0.92% 8.63% 8.04% 9.91%
®
Russell Midcap Value Index 4.96% 9.73% 10.49% 10.86%
(reflects no deduction for fees, expenses, or taxes)
The Portfolio’s primary benchmark index is the Russell Midcap Value Index. The Russell Midcap Value Index is used to
calculate the Portfolio’s performance fee adjustment. The index is described below.
• The Russell Midcap Value Index measures the performance of those Russell Midcap companies with lower price-to-book
ratios and lower forecasted growth values.
MANAGEMENT
Investment Adviser: Janus Capital Management LLC
Portfolio Managers: Kevin Preloger is Co-Portfolio Manager of the Portfolio, which he has co-managed since April 2013.
Justin Tugman, CFA, is Co-Portfolio Manager of the Portfolio, which he has co-managed since March 2015.
PURCHASE AND SALE OF PORTFOLIO SHARES
Purchases of Shares may be made only by the separate accounts of insurance companies for the purpose of funding variable
insurance contracts or by certain qualified retirement plans. Redemptions, like purchases, may be effected only through the
separate accounts of participating insurance companies or through qualified retirement plans. Requests are duly processed at
the NAV next calculated after your order is received in good order by the Portfolio or its agents. Refer to the appropriate
separate account prospectus or plan documents for details.
TAX INFORMATION
Because Shares of the Portfolio may be purchased only through variable insurance contracts and certain qualified retirement
plans, it is anticipated that any income dividends or net capital gains distributions made by the Portfolio will be exempt from
current federal income taxation if left to accumulate within the variable insurance contract or qualified retirement plan. The
federal income tax status of your investment depends on the features of your qualified retirement plan or variable insurance
contract.
PAYMENTS TO INSURERS, BROKER-DEALERS, AND OTHER FINANCIAL INTERMEDIARIES
Portfolio shares are generally available only through an insurer’s variable contracts, or through certain employer or other
retirement plans (Retirement Products). Retirement Products are generally purchased through a broker-dealer or other
financial intermediary. The Portfolio or its distributor (and/or their related companies) may make payments to the insurer
and/or its related companies for distribution and/or other services; some of the payments may go to broker-dealers and other
financial intermediaries. These payments may create a conflict of interest for an intermediary, or be a factor in the insurer’s
decision to include the Portfolio as an underlying investment option in a variable contract. Ask your financial advisor, visit
your intermediary’s website, or consult your insurance contract prospectus for more information.
5 Janus Henderson Mid Cap Value PortfolioADDITIONAL INFORMATION ABOUT THE PORTFOLIO
FEES AND EXPENSES
Please refer to the following important information when reviewing the “Fees and Expenses of the Portfolio” table in
the Portfolio Summary of the Prospectus. The fees and expenses shown were determined based on average net assets as of
the fiscal year ended December 31, 2020.
• “Annual Fund Operating Expenses” are paid out of the Portfolio’s assets and include fees for portfolio management and
administrative services, including recordkeeping, subaccounting, and other shareholder services. You do not pay these fees
directly but, as the Example in the Portfolio Summary shows, these costs are borne indirectly by all shareholders.
• The “Management Fee” is the investment advisory fee rate paid by the Portfolio to Janus Capital. Mid Cap Value Portfolio
pays an investment advisory fee rate that adjusts up or down by a variable rate of up to 0.15% (assuming constant assets)
on a monthly basis based upon the Portfolio’s performance relative to its benchmark index during a measurement period.
This base fee rate, prior to any performance adjustment, is 0.64%. Refer to “Management Expenses” in this Prospectus for
additional information with further description in the Statement of Additional Information (“SAI”).
• “Other Expenses”
° include an administrative services fee of 0.05% of the average daily net assets to compensate insurance companies or
other financial intermediaries for services provided to contract owners and plan participants.
° may include reimbursement to Janus Services LLC (“Janus Services”), the Portfolio’s transfer agent, of its out-of-pocket
costs for serving as transfer agent and providing servicing to shareholders, including servicing provided by third parties.
• Janus Capital has contractually agreed to waive and/or reimburse the Portfolio’s “Total Annual Fund Operating Expenses” to
a certain limit for at least a one-year period commencing on April 30, 2021. The expense limit is described in the
“Management Expenses” section of this Prospectus. Because a fee waiver will have a positive effect upon a portfolio’s
performance, a portfolio that pays a performance-based investment advisory fee may experience a performance adjustment
that is considered favorable to Janus Capital as a result of a fee waiver that is in place during the period when the
performance adjustment applies.
• All expenses in the Portfolio’s “Fees and Expenses of the Portfolio” table are shown without the effect of expense offset
arrangements. Pursuant to such arrangements, credits realized as a result of uninvested cash balances are used to reduce
custodian and transfer agent expenses.
ADDITIONAL INVESTMENT STRATEGIES AND GENERAL PORTFOLIO POLICIES
The Portfolio’s Board of Trustees (“Trustees”) may change the Portfolio’s investment objective or non-fundamental principal
investment strategies without a shareholder vote. The Portfolio will notify you in writing at least 60 days before making any
such change it considers material. In addition, the Portfolio will provide shareholders with at least 60 days’ notice prior to
changing the 80% investment policy. If there is a material change to the Portfolio’s investment objective or principal
investment strategies, you should consider whether the Portfolio remains an appropriate investment for you. There is no
guarantee that the Portfolio will achieve its investment objective.
Unless otherwise stated, the following section provides additional information about the investment strategies and general
policies that are summarized in the Portfolio Summary section, including the types of securities the Portfolio may invest in
when pursuing its investment objective. This section also describes investment strategies and policies that the Portfolio may
use to a lesser extent. These non-principal investment strategies and policies may become more important in the future since
the Portfolio’s composition can change over time. Except for the Portfolio’s policies with respect to illiquid investments and
borrowing, the percentage limitations included in these policies and elsewhere in this Prospectus and/or the SAI normally
apply only at the time of purchase of a security. So, for example, if the Portfolio exceeds a limit as a result of market
fluctuations or the sale of other securities, it will not be required to dispose of any securities. The “Glossary of Investment
Terms” includes descriptions of investment terms used throughout the Prospectus.
Security Selection
The Portfolio pursues its investment objective by investing primarily in the common stocks of mid-sized companies whose
stock prices are believed to be undervalued by the portfolio managers. The Portfolio focuses on companies that have fallen
out of favor with the market or that appear to be temporarily misunderstood by the investment community. As defensive
value managers, the portfolio managers generally look for companies with:
• strong management teams;
6 Janus Aspen Series• strong and stable balance sheets and solid recurring free cash flows;
• attractive relative and absolute valuation ratios or that have underperformed recently;
• favorable reward to risk characteristics;
• durable competitive advantages that are trading at attractive valuations; and
• strong long-term prospects.
The portfolio managers may consider selling a holding if, among other things, the security reaches the portfolio managers’
price target, if the company has a deterioration of fundamentals such as failing to meet key operating benchmarks, or if the
portfolio managers find a better investment opportunity. The portfolio managers may also consider selling a Portfolio holding
to meet redemptions.
Cash Position
The Portfolio may not always stay fully invested. For example, when the portfolio managers believe that market conditions
are unfavorable for investing, or when they are otherwise unable to locate attractive investment opportunities, the Portfolio’s
cash or similar investments may increase. In other words, cash or similar investments generally are a residual – they represent
the assets that remain after the Portfolio has committed available assets to desirable investment opportunities. When the
Portfolio’s investments in cash or similar investments increase, it may not participate in market advances or declines to the
same extent that it would if the Portfolio remained more fully invested. To the extent the Portfolio invests its uninvested cash
through a sweep program (meaning its uninvested cash is pooled with uninvested cash of other funds and invested in certain
securities such as repurchase agreements), it is subject to the risks of the account or fund into which it is investing, including
liquidity issues that may delay the Portfolio from accessing its cash.
In addition, the Portfolio may temporarily increase its cash position under certain unusual circumstances, such as to protect
its assets or maintain liquidity in certain circumstances to meet unusually large redemptions. The Portfolio’s cash position may
also increase temporarily due to unusually large cash inflows. Under unusual circumstances such as these, the Portfolio may
invest up to 100% of its assets in cash or similar investments. In this case, the Portfolio may take positions that are
inconsistent with its investment policies. As a result, the Portfolio may not achieve its investment objective.
Emerging Markets
Within the parameters of its specific investment policies, the Portfolio may invest in securities of issuers or companies from
or with exposure to one or more “developing countries” or “emerging market countries.” Such countries include, but are not
limited to, countries included in the MSCI Emerging Markets IndexSM. Emerging market countries in which the Portfolio may
invest include frontier market countries, the economies of which are less developed than other emerging market countries.
Frontier market countries typically are located in the Asia-Pacific region, Central and Eastern Europe, the Middle East,
Central and South America, and Africa.
Foreign Securities
The Portfolio may invest in foreign securities. The portfolio managers seek investments that meet the selection criteria,
regardless of where an issuer or company is located. Foreign securities are generally selected on a security-by-security basis
without regard to any predetermined allocation among countries or geographic regions. However, certain factors, such as
expected levels of inflation, government policies influencing business conditions, the outlook for currency relationships, and
prospects for economic growth among countries, regions, or geographic areas, may warrant greater consideration in selecting
foreign securities. There are no limitations on the countries in which the Portfolio may invest and the Portfolio may at times
have significant foreign exposure, including exposure to emerging markets.
High-Yield/High-Risk Bonds
A high-yield/high-risk bond (also known as a “junk” bond) is a bond rated below investment grade by major rating agencies
(i.e., BB+ or lower by Standard & Poor’s Ratings Services (“Standard & Poor’s”) and Fitch, Inc. (“Fitch”), or Ba1 or lower by
Moody’s Investors Service, Inc. (“Moody’s”)) or is an unrated bond of similar quality. It presents greater risk of default (the
failure to make timely interest and principal payments) than higher quality bonds. To the extent the Portfolio invests in high-
yield/high-risk bonds, under normal circumstances, the Portfolio will limit its investments in high-yield/high-risk bonds to
20% or less of its net assets.
Illiquid Investments
The Portfolio will not acquire any illiquid investment if, immediately after the acquisition, the Portfolio would have invested
more than 15% of its net assets in illiquid investments that are assets. An illiquid investment is any investment that the
7 Janus Aspen SeriesPortfolio reasonably expects cannot be sold or disposed of in current market conditions in seven calendar days or less
without the sale or disposition significantly changing the market value of the investment.
Initial Public Offerings and Secondary Offerings
The Portfolio may purchase shares issued as part of, or a short period after, a company’s initial public offering (“IPO”), and
may at times dispose of those shares shortly after their acquisition. An IPO is the first sale of stock by a private company to
the public. IPOs are often issued by smaller, younger companies seeking the capital to expand, but can also be done by large
privately-owned companies looking to become publicly traded. The Portfolio may also purchase shares in offerings made by
companies that are publicly traded (“secondary offerings”). Secondary offerings may be made by companies for a number of
reasons, including as part of a refinancing, to raise capital for growth, and/or to provide existing shareholders with a way to
register and sell restricted shares.
Portfolio Turnover
In general, the Portfolio intends to purchase securities for long-term investment, although, to a limited extent, the Portfolio
may purchase securities in anticipation of relatively short-term gains. Short-term transactions may also result from liquidity
needs, securities having reached a price or yield objective, changes in interest rates or the credit standing of an issuer, or by
reason of economic or other developments not foreseen at the time of the initial investment decision. The Portfolio may also
sell one security and simultaneously purchase the same or a comparable security to take advantage of short-term differentials
in bond yields or securities prices. Portfolio turnover is affected by market conditions, changes in the size of the Portfolio
(including due to shareholder purchases and redemptions), the nature of the Portfolio’s investments, and the investment style
of the portfolio managers. Changes are normally made in the Portfolio’s holdings whenever the portfolio managers believe
such changes are desirable. Portfolio turnover rates are generally not a factor in making buy and sell decisions for the
Portfolio.
Increased portfolio turnover may result in higher costs for brokerage commissions, dealer mark-ups, and other transaction
costs. Higher costs associated with increased portfolio turnover also may have a negative effect on the Portfolio’s performance.
The “Financial Highlights” section of this Prospectus shows the Portfolio’s historical turnover rates.
Securities Lending
Certain portfolios may seek to earn additional income through lending their securities to certain qualified broker-dealers and
institutions on a short-term or long-term basis. A portfolio may lend portfolio securities on a short-term or long-term basis,
in an amount equal to up to one-third of its total assets as determined at the time of the loan origination. When a portfolio
lends its securities, it receives collateral (including cash collateral), at least equal to the value of securities loaned. The
portfolio may earn income by investing this collateral in one or more affiliated or non-affiliated cash management vehicles. It
is also possible that, due to a decline in the value of a cash management vehicle in which collateral is invested, the portfolio
may lose money. There is also the risk that when portfolio securities are lent, the securities may not be returned on a timely
basis, and the portfolio may experience delays and costs in recovering the security or gaining access to the collateral provided
to the portfolio to collateralize the loan. If the portfolio is unable to recover a security on loan, the portfolio may use the
collateral to purchase replacement securities in the market. There is a risk that the value of the collateral could decrease
below the cost of the replacement security by the time the replacement investment is made, resulting in a loss to the
portfolio. In certain circumstances, individual loan transactions could yield negative returns. Janus Capital intends to manage
the cash collateral in an affiliated cash management vehicle and will receive an investment advisory fee for managing such
assets. The cash collateral may be invested in time deposits.
Short Sales
Certain portfolios may engage in short sales. In general, no more than 10% of a portfolio’s net assets may be invested in short
positions (through short sales of stocks, futures, uncovered written calls, structured products, and swaps used to effectuate a
short position). A portfolio may engage in short sales “against the box” and options for hedging purposes that are not subject
to this 10% limit. Short sales against the box involve selling short a security that a portfolio owns, or the portfolio has the
right to obtain the amount of the security sold short at a specified date in the future. A portfolio may also enter into a short
sale to hedge against anticipated declines in the market price of a security or to reduce portfolio volatility.
A short sale is generally a transaction in which a portfolio sells a security it does not own or have the right to acquire (or that
it owns but does not wish to deliver) in anticipation that the market price of that security will decline. To complete the
transaction, the portfolio must borrow the security to make delivery to the buyer. The portfolio is then obligated to replace
the security borrowed by purchasing the security at the market price at the time of replacement. A short sale is subject to the
8 Janus Aspen Seriesrisk that if the price of the security sold short increases in value, the portfolio will incur a loss because it will have to replace
the security sold short by purchasing it at a higher price. In addition, the portfolio may not always be able to close out a
short position at a particular time or at an acceptable price. A lender may request, or market conditions may dictate, that the
borrowed securities be returned to the lender on short notice, and the portfolio may have to buy the borrowed securities at
an unfavorable price. If this occurs at a time when other short sellers of the same security also want to close out their
positions, a “short squeeze” can occur, which means that the demand is greater than the supply for the stock sold short. If a
short squeeze occurs, it is more likely that the portfolio will have to cover its short sale at an unfavorable price and
potentially reduce or eliminate any gain, or cause a loss, as a result of the short sale. Because there is no upper limit to the
price a borrowed security may reach prior to closing a short position, a portfolio’s losses are potentially unlimited in a short
sale transaction. A portfolio’s gains and losses will also be decreased or increased, as the case may be, by the amount of any
dividends, interest, or expenses, including transaction costs and borrowing fees, the portfolio may be required to pay in
connection with a short sale. Such payments may result in the portfolio having higher expenses than a portfolio that does not
engage in short sales and may negatively affect the portfolio’s performance.
A portfolio may also enter into short positions through derivative instruments such as options contracts, futures contracts,
and swap agreements which may expose the portfolio to similar risks. To the extent that the portfolio enters into short
derivative positions, the portfolio may be exposed to risks similar to those associated with short sales, including the risk that
the portfolio’s losses are theoretically unlimited. Short sales and short derivatives positions have a leveraging effect on a
portfolio, which may increase the portfolio’s volatility.
Special Situations
The Portfolio may invest in companies that demonstrate special situations or turnarounds, meaning companies that have
experienced significant business problems but are believed to have favorable prospects for recovery. For example, a special
situation or turnaround may arise when, in the opinion of the portfolio managers, the securities of a particular issuer will be
recognized as undervalued by the market and appreciate in value due to a specific development with respect to that issuer.
Special situations may include significant changes in a company’s allocation of its existing capital, a restructuring of assets, or
a redirection of free cash flow. For example, issuers undergoing significant capital changes may include companies involved in
spin-offs, sales of divisions, mergers or acquisitions, companies involved in bankruptcy proceedings, or companies initiating
large changes in their debt to equity ratio. Companies that are redirecting cash flows may be reducing debt, repurchasing
shares, or paying dividends. Special situations may also result from: (i) significant changes in industry structure through
regulatory developments or shifts in competition; (ii) a new or improved product, service, operation, or technological
advance; (iii) changes in senior management or other extraordinary corporate event; (iv) differences in market supply of and
demand for the security; or (v) significant changes in cost structure. Investments in “special situations” companies can present
greater risks than investments in companies not experiencing special situations, and the Portfolio’s performance could be
adversely impacted if the securities selected decline in value or fail to appreciate in value.
Swap Agreements
Certain portfolios may utilize swap agreements including, but not limited to, credit default swaps, equity swaps, inflation
index swaps, interest rate and currency swaps, total return swaps (including fixed-income total return swaps), and swaps on
exchange-traded funds, as a means to gain exposure to certain companies or countries, and/or to “hedge” or protect its
holdings from adverse movements in securities prices, the rate of inflation, or interest rates. Swaps may also be used for
capital appreciation. Swap agreements are two-party contracts to exchange one set of cash flows for another. Swap agreements
entail the risk that a party will default on its payment obligations to a portfolio. If the other party to a swap defaults, the
portfolio would risk the loss of the net amount of the payments that it contractually is entitled to receive. If a portfolio
utilizes a swap at the wrong time or judges market conditions incorrectly, the swap may result in a loss to the portfolio and
reduce the portfolio’s total return. Various types of swaps such as credit default, equity, interest rate, and total return are
described in the “Glossary of Investment Terms.”
Other Types of Investments
Unless otherwise stated within its specific investment policies, the Portfolio may also invest in other types of domestic and
foreign securities and use other investment strategies, as described in the “Glossary of Investment Terms.” These securities
and strategies are not intended to be principal investment strategies of the Portfolio. If successful, they may benefit the
9 Janus Aspen SeriesPortfolio by earning a return on the Portfolio’s assets or reducing risk; however, they may not achieve the Portfolio’s
investment objective. These securities and strategies may include:
• debt securities (such as bonds, notes, sovereign debt, and debentures)
• other investment companies (such as exchange-traded funds)
• preferred stocks and securities convertible into common stocks or preferred stocks
• indexed/structured securities (such as commercial and residential mortgage- and asset-backed securities)
• various derivative transactions including, but not limited to, options, futures on U.S. and foreign exchanges, forwards, swap
agreements, warrants, participatory notes, structured notes, and other types of derivatives individually or in combination for
hedging purposes or for nonhedging purposes such as seeking to earn income and enhance return, to protect unrealized
gains, or to avoid realizing losses; such techniques may also be used to adjust currency exposure relative to a benchmark
index, to gain exposure to the market pending investment of cash balances, or to meet liquidity needs
• securities purchased on a when-issued, delayed delivery, or forward commitment basis
• equity and fixed-income securities issued in private placement transactions
RISKS OF THE PORTFOLIO
The value of your investment will vary over time, sometimes significantly, and you may lose money by investing in the
Portfolio. To varying degrees, the Portfolio may invest in stocks, fixed-income securities, money market instruments or cash/
cash equivalents, and derivatives. The following information is intended to help you better understand some of the risks of
investing in the Portfolio, including those risks that are summarized in the Portfolio Summary section. This information also
includes descriptions of other risks the Portfolio may be subject to as a result of additional investment strategies and general
policies that may apply to the Portfolio. The impact of the following risks on the Portfolio may vary depending on the
Portfolio’s investments. The greater the Portfolio’s investment in a particular security, the greater the Portfolio’s exposure to the
risks associated with that security. Before investing in the Portfolio, you should consider carefully the risks that you assume
when investing in the Portfolio.
Brexit Risk. The risk of investing in British or European companies may be heightened due to the withdrawal of the United
Kingdom from the European Union (the “EU”) (commonly known as “Brexit”). The negative impact of Brexit on the United
Kingdom and European economies could potentially result in increased volatility and illiquidity and lower economic growth
for companies that rely significantly on the United Kingdom and/or Europe for their business activities and revenues. Any
further exits from the EU, or an increase in the belief that such exits are likely or possible, would likely cause additional
market disruption globally and introduce new legal and regulatory uncertainties. While certain measures have been or may be
proposed or introduced, at the EU level or at the member state level, which are designed to minimize disruption in the
financial markets, it is not currently possible to determine whether such measures would achieve their intended effects. To
the extent that the Portfolio has exposure to British or European markets or to transactions tied to the value of the pound
sterling or euro, these events could negatively affect the value and liquidity of the Portfolio’s investments.
Counterparty Risk. Portfolio transactions involving a counterparty are subject to the risk that the counterparty or a third
party will not fulfill its obligation to the Portfolio (“counterparty risk”). Counterparty risk may arise because of the
counterparty’s financial condition (i.e., financial difficulties, bankruptcy, or insolvency), market activities and developments, or
other reasons, whether foreseen or not. A counterparty’s inability to fulfill its obligation may result in significant financial loss
to the Portfolio. The Portfolio may be unable to recover its investment from the counterparty or may obtain a limited
recovery, and/or recovery may be delayed. The Portfolio may be exposed to counterparty risk to the extent it participates in
lending its securities to third parties and/or cash sweep arrangements whereby the Portfolio’s cash balance is invested in one
or more types of cash management vehicles or in time deposits. In addition, the Portfolio may be exposed to counterparty
risk through its investments in certain securities, including, but not limited to, repurchase agreements, debt securities, and
derivatives (including various types of swaps, futures, and options). The Portfolio intends to enter into financial transactions
with counterparties that Janus Capital believes to be creditworthy at the time of the transaction. There is always the risk that
Janus Capital’s analysis of a counterparty’s creditworthiness is incorrect or may change due to market conditions. To the
extent that the Portfolio focuses its transactions with a limited number of counterparties, it will have greater exposure to the
risks associated with one or more counterparties.
10 Janus Aspen SeriesDerivatives Risk. Derivatives can be highly volatile and involve risks in addition to the risks of the underlying referenced
securities or asset. Gains or losses from a derivative investment can be substantially greater than the derivative’s original cost,
and can therefore involve leverage. Leverage may cause the Portfolio to be more volatile than if it had not used leverage.
Derivatives can be complex instruments and may involve analysis that differs from that required for other investment types
used by the Portfolio. If the value of a derivative does not correlate well with the particular market or other asset class to
which the derivative is intended to provide exposure, the derivative may not produce the anticipated result. Derivatives can
also reduce the opportunity for gain or result in losses by offsetting positive returns in other investments. Derivatives can be
less liquid than other types of investments and entail the risk that the counterparty will default on its payment obligations. If
the counterparty to a derivative transaction defaults, the Portfolio would risk the loss of the net amount of the payments that
it contractually is entitled to receive. To the extent the Portfolio enters into short derivative positions, the Portfolio may be
exposed to risks similar to those associated with short sales, including the risk that the Portfolio’s losses are theoretically
unlimited.
Emerging Markets Risk. To the extent that the Portfolio invests a significant amount of its assets in one or more of these
countries, its returns and net asset value may be affected to a large degree by events and economic conditions in such
countries. The risks of foreign investing are heightened when investing in emerging markets, which may result in the price of
investments in emerging markets experiencing sudden and sharp price swings. In many developing markets, there is less
government supervision and regulation of stock exchanges, brokers, and listed companies than in more developed markets.
Similarly, issuers in such markets may not be subject to regulatory, disclosure, accounting, auditing, and financial reporting
and recordkeeping standards comparable to those to which U.S. companies are subject. Information about emerging markets
companies, including financial information, may be less available or reliable and the Portfolio’s ability to conduct due
diligence with respect to such companies may be limited. In addition, certain emerging market jurisdictions materially restrict
the Public Company Accounting Oversight Board’s (“PCAOB”) inspection, investigation, and enforcement capabilities which
impairs the ability to conduct independent oversight or inspection of accounting firms located in, or operating in, certain
emerging markets; therefore, there is no guarantee that the quality of financial reporting or the audits conducted by audit
firms of emerging market issuers meet PCAOB standards. Accordingly, these investments may be potentially more volatile in
price and less liquid than investments in developed securities markets, resulting in greater risk to investors. There is a risk in
developing countries that a current or future economic or political crisis could lead to price controls, forced mergers of
companies, expropriation or confiscatory taxation, imposition or enforcement of foreign ownership limits, seizure,
nationalization, sanctions or imposition of restrictions by various governmental entities on investment and trading, or creation
of government monopolies, any of which may have a detrimental effect on the Portfolio’s investments. Emerging markets may
be subject to a higher degree of corruption and fraud than developed markets, and financial institutions and transaction
counterparties may have less financial sophistication, creditworthiness, and/or resources than participants in developed
markets.
The securities markets of many of these emerging market countries may also be smaller, less liquid, and subject to greater
price volatility than those in the United States. Moreover, the legal remedies for investors in emerging markets or other legal
systems to ensure orderly enforcement of property interests such as bankruptcy may be more limited than the remedies
available in the United States and the ability of U.S. authorities (e.g., the Securities and Exchange Commission (the “SEC”)
and the U.S. Department of Justice) to bring actions against bad actors may be limited. A shareholder’s ability to bring and
enforce legal actions in emerging market countries, or to obtain information needed to pursue or enforce such actions, may
be limited and as a result such claims may be difficult or impossible to pursue. In the event of a default on any investments
in foreign debt obligations, it may be more difficult for the Portfolio to obtain or to enforce a judgment against the issuers of
such securities. In addition, the Portfolio’s investments may be denominated in foreign currencies and therefore, changes in
the value of a country’s currency compared to the U.S. dollar may affect the value of the Portfolio’s investments. Further, the
taxation systems at the federal, regional, and local levels in developing or emerging market countries may be less transparent,
inconsistently enforced, and subject to sudden change. To the extent that the Portfolio invests a significant portion of its
assets in the securities of emerging markets issuers in or companies of a single country or region, it is more likely to be
impacted by events or conditions affecting that country or region, which could have a negative impact on the Portfolio’s
performance. The Portfolio may be subject to emerging markets risk to the extent that it invests in securities of issuers or
companies which are not considered to be from emerging markets, but which have customers, products, or transactions
associated with emerging markets. Some of the risks of investing directly in emerging market securities may be reduced when
the Portfolio invests indirectly in such securities through various other investment vehicles including derivatives, but such
investments also involve other risks.
11 Janus Aspen SeriesEmerging market countries in which the Portfolio may invest include frontier market countries, which generally have smaller
economies and even less developed capital markets than traditional developing markets, and, as a result, the risks of investing
in developing market countries are magnified in frontier market countries. The magnification of risks are the result of:
potential for extreme price volatility and illiquidity in frontier markets; government ownership or control of parts of private
sector and of certain companies; trade barriers, exchange controls, managed adjustments in relative currency values and other
protectionist measures imposed or negotiated by other countries; and the relatively new and unsettled securities laws in many
frontier market countries.
Eurozone Risk. A number of countries in the EU have experienced, and may continue to experience, severe economic and
financial difficulties. In particular, many EU nations are susceptible to economic risks associated with high levels of debt,
notably due to investments in sovereign debt. These events have adversely affected the exchange rate of the euro and may
continue to significantly affect European countries. As a result, financial markets in the EU have been subject to increased
volatility and declines in asset values and liquidity. Responses to these financial problems by European governments, central
banks, and others, including austerity measures and reforms, may not work, may result in social unrest, and may limit future
growth and economic recovery or have other unintended consequences. All of these developments may continue to
significantly affect the economies of all EU countries, which in turn may have a material adverse effect on the Portfolio’s
investments in such countries, other countries that depend on EU countries for significant amounts of trade or investment, or
issuers with exposure to debt issued by certain EU countries.
Exchange-Traded Funds Risk. The Portfolio may invest in exchange-traded funds (“ETFs”) to gain exposure to a particular
portion of the market. ETFs are typically open-end investment companies, which may seek to track the performance of a
specific index or be actively managed. ETFs are traded on a national securities exchange at market prices that may vary from
the net asset value of their underlying investments. Accordingly, there may be times when an ETF trades at a premium or
discount to its net asset value. When the Portfolio invests in an ETF, in addition to directly bearing the expenses associated
with its own operations, it will bear a pro rata portion of the ETF’s expenses. As a result, the cost of investing in the Portfolio
may be higher than the cost of investing directly in ETFs and may be higher than other mutual funds that invest directly in
stocks and bonds. ETFs also involve the risk that an active trading market for an ETF’s shares may not develop or be
maintained. Similarly, because the value of ETF shares depends on the demand in the market, the Portfolio may not be able
to purchase or sell an ETF at the most optimal time, which could adversely affect the Portfolio’s performance. In addition,
ETFs that track particular indices may be unable to match the performance of such underlying indices due to the temporary
unavailability of certain index securities in the secondary market or other factors, such as discrepancies with respect to the
weighting of securities.
The ETFs in which the Portfolio invests are subject to specific risks, depending on the investment strategy of the ETF. In
turn, the Portfolio will be subject to substantially the same risks as those associated with direct exposure to the securities or
commodities held by the ETF. Because the Portfolio may invest in a broad range of ETFs, such risks may include, but are not
limited to, leverage risk, foreign exposure risk, and commodity-linked investments risk.
Foreign Exposure Risk. Within the parameters of its specific investment policies, the Portfolio may invest in foreign debt and
equity securities either indirectly (e.g., depositary receipts, depositary shares, and passive foreign investment companies) or
directly in foreign markets, including emerging markets. An issuer is deemed to be economically tied to a country or
countries if one or more of the following tests are met: (i) the issuer is organized in, or its primary business office or
principal trading market of its equity are located in, the country; (ii) a majority of the issuer’s revenues are derived from one
or more countries; or (iii) a majority of the issuer’s assets are located in one or more countries. Investments in foreign
securities, including securities of foreign and emerging market governments, may involve greater risks than investing in
domestic securities because the Portfolio’s performance may depend on factors other than the performance of a particular
company. These factors include:
• Currency Risk. As long as the Portfolio holds a foreign security, its value will be affected by the value of the local currency
relative to the U.S. dollar. When the Portfolio sells a foreign currency denominated security, its value may be worth less in
U.S. dollars even if the security increases in value in its home country. U.S. dollar-denominated securities of foreign issuers
may also be affected by currency risk, as the value of these securities may also be affected by changes in the issuer’s local
currency.
• Political and Economic Risk. Foreign investments may be subject to increased political and economic risks, including the
imposition of economic and other sanctions. Sanctions imposed by the U.S. Government on other countries or persons or
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